SECOND QUARTER MARKET REPORT APRIL JUNE 2018

Transcription

1 SECOND QUARTER MARKET REPORT APRIL JUNE 2018 Old Reserve Bank Building, Victoria Avenue P/Bag 270 Blantyre Malawi Telephone: (265) ; Fax: (265) Website: Malawi s global portal

2 CO NTENT S Trading Summary 1 Market performance 2 Trade performance analysis 2 Market capitalization and index 2 Market liquidity 2 Company trading performance 3 Bonds/Treasury Notes 4 Economic review 5 QUARTERLY MARKET PERFORMANCE REPORT

3 1. T R A D I N G S U M M A R Y The market was bullish in Q as it registered a positive return on index of 21.55%(21.55% in US$ terms) and an increase in both total traded value and volume. There were no trades on the Government Treasury Notes. Index Levels and Return 2 nd Qtr INDEX APRIL, 2018 JUNE, 2018 % 2nd QTR % 2nd QTR % YTD MASI DSI FSI Trading Statistics 2 nd Qtr nd Qtr nd Qtr % Traded Value (MK) 14,503,419, ,196,657, Traded Value (US$) 19,987, ,405, Traded Vol. Shares 353,101, ,582, No. of Transactions Index Close (MASI) Listed companies Traded Companies Not Traded Gainers Decliners Unchanged 02 01

4 2. M A R K E T P E R F O R M A N C E A. Trade Performance Analysis The market transacted a total of 353,101,240 shares at a total consideration of MK14,503,419, (US$19,987,016.88) in 402 trades. In the corresponding period 2017, the market transacted a total of 106,582,351 shares at a total consideration of MK3,196,657, (US$4,405,203.82) in 245 trades. This reflects a % increase in terms of share volume and a % (353.71% in US Dollar terms) increase in share value. Old Mutual limited (OMU) listed on 26 June, 2018 and Old Mutual plc (OML) delisted on 29 June, Daily average share trades exhibited similar trends where the market registered an average daily volume of 5,695,181 shares compared to 1,719,070 shares traded in the corresponding second quarter of The average daily turnover for the second quarter 2018 was MK233,926, (US$322,371.24) compared with MK51,558, (US$71,051.67) for the corresponding second quarter 2017, reflecting an increase of % (353.71% in US Dollar terms). The month of May registered the highest in terms of both value of MK10,613,139, (US$14,625,963.41) and volume of 265,730,032 shares. B. Market Capitalization and Index The market registered a positive return on index as reflected in the upward movement of the Malawi All Share Index (MASI) from points registered on 1 April 2018 to points registered on 29 th June 2018, giving a return on index of 21.55%, (21.55% in US$ terms) compared to 8.20%, (8.20% in US$ terms) registered in Q2 of The price gains registered by FMBCH, MPICO, NBM, NITL, PCL, STANDARD, SUNBIRD, TNM and OML were enough to offset share price losses registered by NBS and NICO resulting into an upward movement of the Malawi All Share Index, arising from an increase in both the Domestic Share Index (11.24%) and the Foreign Share Index (58.50%). QUARTERLY MARKET PERFORMANCE REPORT Market capitalization increased in both Kwacha and United States Dollar terms from MK1,120, million (US$1, million) in April 2018 to MK1,370, million (US$1, million) in June C. Market Liquidity The turnover velocity measured by the ratio of Total Value of Trades to Market Capitalisation (TVT/MCAP*), an indicator of the liquidity of assets traded on the market, in the quarter under review was recorded at 2.12%, higher than 0.93% registered in second quarter The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.56% in the review period while during the corresponding period of 2017 liquidity was at 0.14%.

5 2. M A R K E T P E R F O R M A N C E

6 3. C O M P A N Y T R A D I N G P E R F O R M A N C E A. Top gainers: Nine Counters registered gains MSE CODE COUNTER NAME % GAIN FMBCH FMB Capital Holdings plc NITL National Investment Trust plc SUNBIRD Sunbird Tourism plc PCL Press Corporation plc OML Old Mutual plc B. Top Losers: Two Counter registered losses C. Top Five Traded Stocks by volume MSE CODE COUNTER NAME % LOSS NICO NICO Holdings plc 4.17 NBS NBS Bank plc 0.46 MSE CODE COUNTER NAME SHARES % of Total TNM Telekom Networks Malawi plc 192,197, NICO NICO Holdings plc 60,260, MPICO MPICO plc 35,708, SUNBIRD Sunbird Tourism plc 26,453, FMBCH FMB Capital Holdings plc 21,096, D. Top Five Traded Stocks by value MSE CODE COUNTER NAME VALUE % of Total TNM Telekom Networks Malawi plc 3,873,094, SUNBIRD Sunbird Tourism plc 3,049,830, NICO NICO Holdings plc 2,649,967, FMBCH FMB Capital Holdings plc 2,511,395, ILLOVO Illovo Sugar Malawi plc 1,065,460, QUARTERLY MARKET PERFORMANCE REPORT

7 3. C O M P A N Y T R A D I N G P E R F O R M A N C E COUNTER HIGH (MK) LOW (MK) Earnings Yield (%) P/E P/BV MKT CAP (MK Mln) MKT CAP (US$ Mln) BHL , FMBCH , ILLOVO , MPICO , NBM , NBS N/A N/A , NICO , NITL , PCL , STANDARD , SUNBIRD , TNM , OML 2, , , OMU 2, , ,

8 3. C O M P A N Y T R A D I N G P E R F O R M A N C E Company Opening Price Closing Price % Price Change Share Vol. Traded % Traded Value Traded MK BHL , ,512, FMBCH ,096, ,511,395, ILLOVO ,106, ,065,460, MPICO ,708, ,675, NBM , ,281, NBS ,169, ,712, NICO ,260, ,649,967, NITL ,826, ,117, PCL , ,498, STANDARD , ,752, SUNBIRD ,453, ,049,830, TNM ,197, ,873,094, OMU OML PLC , ,119, ,101, ,503,419, QUARTERLY MARKET PERFORMANCE REPORT

9 4. B O N D T R A D I N G P E R F O R M A N C E B O N D M A T U R I T Y D A T E C O U P O N D A T E COUPON RATE (%) N O M I N A L V A L U E ( M K MN) TN02YR August 2019 February & August 11 20, TN02YR January 2020 June & December 10 5, TN03YR February 2021 July & January 11 3, Total Outstanding Treasury notes 28,000.00

10 5. E C O N O M I C R E V I E W Interest Rates During the quarter under review, the yield on the 91 Tbill decreased from % to % whilst the yields on 182 Tbill and the 364 Tbill were steady at % and % respectively. Exchange Rates The Kwacha was stable against the United States Dollar in the period under review. Inflation Rates Headline inflation eased by 0.8 percentage points from 9.7% in April, 2018 to 8.9% in May, Monetary Policy Rate The Monetary Policy Committee at its meeting held on 03 and 04 July, 2018 decided to maintain the policy rate at 16%.. QUARTERLY MARKET PERFORMANCE REPORT

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12 CONTACTS AND ADDRESSES OF MSE STOCK BROKERS Stockbrokers Malawi Limited NBM Business Complex P.O Box Blantyre Tel: Fax: sml@smlmw.com Cedar Capital Ltd (Formerly African Alliance Securities) 4th Floor, Livingstone Towers P.O Box 3340 Blantyre Tel: Fax: kamphonia@cedarcapital.mw Continental Capital Limited 1st Floor, Unit House P.O Box 1444 Blantyre Tel: capital@continental.mw capital@cdh-malawi.com QUARTERLY MARKET PERFORMANCE REPORT